Executive Summary

Q2 2025 revenue declined 9.8% year over year to $107.0M, while gross margin expanded to 32.8% and operating income turned positive ($2.1M vs. a loss of $0.8M in Q2 2024) .
Diluted EPS of $5.05 benefited from a $22.8M gain on a modification of the Flooring Liquidators seller note; adjusted EBITDA rose to $6.4M (+44.6% YoY) as cost reduction initiatives took hold .
Retail-Entertainment and Steel Manufacturing delivered improved operating performance and higher operating margins; Retail-Flooring and Flooring Manufacturing remained pressured by housing market softness and reduced consumer demand .
Liquidity remained solid with total cash availability of $26.6M; the company repurchased 31,323 shares at an average price of $8.28, signaling confidence and capital discipline .

What Went Well and What Went Wrong

Steel Manufacturing margins expanded to 21.2% (from 14.3% YoY), with operating income up 151.8% YoY to $2.2M, driven by strategic price increases and the Central Steel acquisition .
Retail-Entertainment delivered revenue growth (+9.6% YoY to $18.5M) and gross margin improvement (59.1% vs. 58.4% YoY), reflecting a favorable product mix with higher selling prices .
Management executed a $19M seller note reduction (net $22.8M gain), calling it “a big win…we’ve [cut] the note…down to $15 million,” materially strengthening the balance sheet and earnings .

Retail-Flooring revenue fell 14.5% YoY to $27.4M; operating loss narrowed but remained elevated at $(2.7)M, as store dispositions and product mix weighed on results .
Flooring Manufacturing revenue declined 12.8% YoY to $29.8M and operating income fell to $1.5M (from $2.0M), with reduced consumer demand tied to ongoing housing market weakness .
EPS strength was largely non-recurring due to the seller note gain; underlying demand headwinds persisted, particularly in flooring, and management reiterated no formal guidance amid macro uncertainty .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$118.626	$111.508	$107.013
Gross Margin (%)	29.9%	31.7%	32.8%
Operating Income ($USD Millions)	$(0.838)	$0.762	$2.092
Net Income ($USD Millions)	$(3.281)	$0.492	$15.866
Diluted EPS ($USD)	$(1.04)	$0.16	$5.05
Adjusted EBITDA ($USD Millions)	$4.457	$5.744	$6.446

Segment breakdown (Q2 2025 vs. Q2 2024):

Segment	Revenue Q2 2024 ($MM)	Revenue Q2 2025 ($MM)	Operating Income Q2 2024 ($MM)	Operating Income Q2 2025 ($MM)
Retail - Entertainment	$16.842	$18.467	$1.784	$2.498
Retail - Flooring	$32.032	$27.399	$(3.023)	$(2.741)
Flooring Manufacturing	$34.180	$29.820	$1.978	$1.483
Steel Manufacturing	$35.488	$31.321	$0.872	$2.196
Corporate & Other	$0.084	$0.006	$(2.449)	$(1.344)

KPIs and balance sheet:

KPI	Q1 2025	Q2 2025
Total Cash Availability ($MM)	$31.1	$26.6
Cash On Hand ($MM)	$7.4	$6.9
Credit Line Availability ($MM)	$23.7	$19.7
Working Capital ($MM)	~$51.0	~$49.1
Total Assets ($MM)	$395.5	$393.6
Stockholders’ Equity ($MM)	$73.3	$88.9
Share Repurchases (shares; avg price)	~15,700; N/A	31,323; $8.28

Metric	Period	Previous Guidance	Current Guidance	Change
Company-wide guidance	FY/Q2 2025 onward	None provided	None provided	Maintained (no formal guidance)

Note: Management does not provide forward-looking projections; reiterated in Q1 and not updated in Q2 .

Topic	Previous Mentions (Q3 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Cost reduction in Retail-Flooring	Integration and headcount actions; store dispositions to unwind underperformers	“Targeted cost reduction initiatives…already resulted in significant savings”	Improving execution
Steel Manufacturing margins	Lower margins due to production inefficiencies; PMW covenant issue and reclassification of debt	Margin expansion to 21.2%; operating income up 151.8% YoY; Central Steel contribution	Improving
Retail-Entertainment performance	Store count increases and used products supported margins	Revenue +9.6% YoY; GM 59.1%; mix to new products with higher prices	Stable to improving
Housing market softness	Elevated rates pressuring flooring demand	Ongoing softness impacting Retail-Flooring and Flooring Manufacturing	Persistent headwind
Liquidity/capital allocation	Share repurchases (Q3 2024 program)	$26.6M availability; 31,323 shares repurchased in Q2	Balanced discipline
Seller note/equity accretive actions	PMW earn-out/seller note settlement gain in Q1 2025	Flooring Liquidators seller note cut ~$19M; $22.8M gain; CEO calls it “a big win”	De-leveraging, accretive
Tariffs/macro risk management	N/A	Diversifying vendors; no negative impact to date; inventory build provides cushion	Monitored, low current impact

“Continuing the trend…Retail-Entertainment and Steel Manufacturing…delivered improved operating performance…ongoing softness in new home construction and home refurbishment…pressured our Retail-Flooring and Flooring Manufacturing segments.” — CFO David Verret .
“We initiated large cost-reduction initiatives in the Retail-Flooring segment…already resulted in significant savings.” — CEO Jon Isaac .
“We’ve…cut the [Flooring Liquidators] note…down to $15 million…It’s a big win.” — CEO Jon Isaac (Q&A) .
“We remain confident in the long-term fundamentals of our businesses.” — CEO Jon Isaac .

Seller note modification: Not contemplated in original agreement; renegotiated opportunistically; reduces balance to ~$15M; management framed as a shareholder “win” .
Tariffs: No negative impacts to date; diversification across overseas and domestic vendors; inventory build post-Chinese New Year provides flexibility if tariffs shift .
Guidance posture: Management reiterated they do not provide projections, focusing instead on operational initiatives and efficiency improvements .

No formal quantitative guidance was provided or updated for revenue, margins, OpEx, OI&E, tax rate, or segment-specific metrics .

Wall Street consensus via S&P Global was unavailable for EPS and revenue for LIVE in Q2 2025; as a result, estimate comparisons and “beat/miss” determinations cannot be formally assessed based on S&P Global consensus. Values retrieved from S&P Global indicated lack of coverage for consensus metrics.

EPS strength was driven by a non-recurring $22.8M gain on a seller note modification; strip out one-offs to assess underlying trajectory (gross margin up, adjusted EBITDA improving) .
Steel Manufacturing and Retail-Entertainment are the operational bright spots; Steel’s margin expansion and Central Steel contribution support near-term profitability mix .
Flooring exposure remains macro-sensitive; cost discipline is mitigating and may set up operating leverage when housing stabilizes or rates ease .
Liquidity and equity strengthened: $26.6M availability, higher equity ($88.9M), and continued buybacks underscore capital allocation confidence .
Limited sell-side coverage and no company guidance mean the stock may trade on disclosed operating metrics, capital actions, and macro reads rather than consensus beats/misses.
Near-term trading: watch for continued cost reductions, segment margin resilience, and any incremental corporate actions (debt negotiations, tuck-ins) as catalysts .
Medium-term thesis: diversified portfolio, improving segments, and deleveraging actions can compound value; timing depends on flooring demand normalization and execution on efficiency programs .